ECON 1951 EXAMINATION TEST 2026
CORE MICROECONOMICS AND
MACROECONOMICS CONCEPTS REVIEW
◉ What was the average weekly wage for men in 1951?
Answer: £8.30.
◉ What was the average weekly wage for men in 1961?
Answer: £15.35.
◉ What were some examples of consumer goods that saw price
reductions?
Answer: Electric fires, cosmetics, and cars.
◉ What was the role of service industries by 1960?
Answer: Nearly 5 million people were employed in service
industries.
◉ What is inflation?
Answer: An increase in the price of goods and services due to higher
consumer demand.
, ◉ What is deflation?
Answer: A fall in the price of goods and services.
◉ What does 'balance of trade' refer to?
Answer: The difference between a country's exports and imports.
◉ What does 'run on the pound' mean?
Answer: A situation where there is a sudden demand to exchange
pounds for foreign currency.
◉ What challenges did Conservative governments face in the 1950s?
Answer: They struggled with inflation and maintaining economic
growth while ensuring full employment.
◉ What is meant by an overheating economy?
Answer: An economy where high consumer demand exceeds
production capacity, leading to rising prices and inflation.
◉ What happens to consumer demand when disposable incomes
decrease?
Answer: Consumer demand falls, leading to struggles for businesses
and potential unemployment.
CORE MICROECONOMICS AND
MACROECONOMICS CONCEPTS REVIEW
◉ What was the average weekly wage for men in 1951?
Answer: £8.30.
◉ What was the average weekly wage for men in 1961?
Answer: £15.35.
◉ What were some examples of consumer goods that saw price
reductions?
Answer: Electric fires, cosmetics, and cars.
◉ What was the role of service industries by 1960?
Answer: Nearly 5 million people were employed in service
industries.
◉ What is inflation?
Answer: An increase in the price of goods and services due to higher
consumer demand.
, ◉ What is deflation?
Answer: A fall in the price of goods and services.
◉ What does 'balance of trade' refer to?
Answer: The difference between a country's exports and imports.
◉ What does 'run on the pound' mean?
Answer: A situation where there is a sudden demand to exchange
pounds for foreign currency.
◉ What challenges did Conservative governments face in the 1950s?
Answer: They struggled with inflation and maintaining economic
growth while ensuring full employment.
◉ What is meant by an overheating economy?
Answer: An economy where high consumer demand exceeds
production capacity, leading to rising prices and inflation.
◉ What happens to consumer demand when disposable incomes
decrease?
Answer: Consumer demand falls, leading to struggles for businesses
and potential unemployment.
